Leasing vs. Owning

• 1). Get a copy of your credit report from each of the three credit reporting agencies: Equifax, Experian and TransUnion. Leasing a vehicle depends upon your credit score just as buying does. The better your score, the better the deal you'll be offered, according to Smart Motors.
  
  
• 2). Check your bank account. Even with excellent credit, you may have to put money down at signing. In fact, according to Lincoln's website, leasing a 2011 Lincoln Navigator requires $5,850 down when you put your signature on the lease agreement, which, in this case, lasts three years. The money down does include the first month's lease payment, says the Lincoln website.
  
  
• 3). Think about the monthly payments. Leasing a 2011 Lincoln Navigator would cost you $645 a month for three years after the down payment is made; owning the vehicle would cost $1,463 a month over the same time period, according to the Lincoln website. Decide which is affordable to you.
  
  
• 4). Consider what you want from the vehicle. When you own the vehicle, you can put as many miles on it as you want and make any modifications you desire. However, if you lease the vehicle, not only must you have the vehicle repaired by the shop, but you have a strict mileage limit to adhere to, you can't alter the vehicle and you'll be responsible for any dings or marks on the car, according to Smart Motors.
  
  
• 5). Think about the commitment. Leasing a vehicle binds you to a legal contract, which obligates you to making payments for the specified length of time. Breaking the lease comes with a heavy financial penalty, according to Smart Motors, which can exceed $1,000.